BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | SB 1196|
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UNFINISHED BUSINESS
Bill No: SB 1196
Author: Hill (D), et al.
Amended: 8/19/16
Vote: 21
SENATE BUS., PROF. & ECON. DEV. COMMITTEE: 9-0, 4/18/16
AYES: Hill, Bates, Berryhill, Block, Galgiani, Hernandez,
Jackson, Mendoza, Wieckowski
SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
SENATE FLOOR: 38-0, 5/12/16
AYES: Allen, Anderson, Bates, Beall, Berryhill, Block,
Cannella, De León, Fuller, Gaines, Galgiani, Glazer, Hall,
Hancock, Hernandez, Hertzberg, Hill, Hueso, Huff, Jackson,
Lara, Leno, Leyva, McGuire, Mendoza, Mitchell, Monning,
Moorlach, Morrell, Nguyen, Nielsen, Pan, Pavley, Roth, Stone,
Vidak, Wieckowski, Wolk
NO VOTE RECORDED: Liu, Runner
ASSEMBLY FLOOR: 79-0, 8/30/16 - See last page for vote
SUBJECT: Professions and vocations: Bureau of Real Estate,
Bureau of Real Estate Appraisers, and Bureau of
Security and Investigative Services
SOURCE: Author
DIGEST: This bill subjects the Bureau of Security and
Investigative Services (BSIS) to review by the appropriate
committees of the Legislature, and makes various changes to
provisions in the Alarm Company Act, Locksmith Act, Private
Investigator Act, Private Security Services Act, Proprietary
Security Services Act, and Collateral Recovery Act to improve
SB 1196
Page 2
the oversight, enforcement and regulation by the BSIS of
licensees under each Act; adds a sunset review date for the
Bureau of Real Estate (CalBRE) and Bureau of Real Estate
Appraisers (BREA), and makes various changes to provisions in
the Real Estate Law and the Real Estate Appraisers' Licensing
and Certification Law to improve the oversight, enforcement and
regulation by the CalBRE and BREA, and makes other technical
changes.
Assembly Amendments insert provisions related to BSIS.
ANALYSIS:
Existing law:
1) Establishes the BSIS within the Department of Consumer
Affairs (DCA). (Business and Professions Code (BPC) §
6980.1) with responsibility for administering the Alarm
Company Act (BPC § 7590), Locksmith Act (BPC § 6980), Private
Investigator Act (BPC § 7512), Private Security Services Act
(BPC § 7580), Proprietary Security Services Act (BPC § 7574)
and Collateral Recovery Act (BPC § 7500) and oversight for
licensees of each Act.
2) Establishes the Real Estate Law, administered by the CalBRE,
within the DCA, to license and regulate real estate
salespersons, brokers, and mortgage loan originators. (BPC §
10000, et seq.)
3) Provides that the Real Estate Commissioner (Commissioner)
may revoke or suspend a real estate license who entered a
plea of guilty or nolo contendere to, or was found guilty of,
or convicted of, a felony, or a crime substantially related
to the qualifications, functions, or duties of a real estate
licensee, after the time for appeal has elapsed or the
judgment of conviction has been affirmed on appeal. (BPC §
10177(b))
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4) Establishes the Real Estate Appraiser's Law, administered by
the BREA within the DCA, to licenses and regulates real
estate appraisers. (BPC § 11300, et seq.)
5) Requires the Commissioner to adopt regulations governing the
process and procedures for renewal of a license to include,
but not be limited to, continuing education (CE)
requirements, which will be reported on the basis of
four-year CE cycles. (BPC § 11360)
This bill:
1) Subjects the BSIS to review by the appropriate committees of
the Legislature.
2) Establishes a process by which BSIS will contract with a
vendor to offer assessments to determine if an applicant for
licensure as an armed security guard is capable of exercising
appropriate judgment, restraint and self-control.
3) Authorizes BSIS authority to seek an emergency order against
the holder of a firearms permit if, after the BSIS'
investigation upon receipt of arrest information for assault,
battery, use of force or violence, or a report from a BSIS
approved firearms training facility or a report from the
employer that individual is a threat to public safety or if
the individual has been determined incapable of exercising
appropriate judgment, restraint and self-control.
4) Requires BSIS to conduct inspections of all firearms
training facilities in this state to ensure compliance with
applicable BSIS requirements, rules, and regulations.
5) Ensures due process for firearm permit licensees and
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applicants, while also ensuring that a firearms permit is
associated with a BSIS license type.
6) Requires alarm companies to make a specific disclosure to
their customers regarding any evergreen clause renewals in
their contracts.
7) Requires both a security guard and his or her employer to
submit a written report of any incident involving the
discharge of a firearm while on he or she is on duty.
8) Clarifies that private investigators who wish to carry a
concealed firearm must obtain and have on their person while
carrying out an investigation, both a BSIS issued firearms
permit as well as a Concealed Carry Weapons permit.
9) Updates the fine and citation structure for violations of
provisions in the Alarm Company Act, Private Investigator
Act, Private Security Services Act, and Collateral Recovery
Act to conform to current practice.
10)Adds a four year sunset review date to the CalBRE and BREA.
11)Permits the CalBRE Commissioner to suspend the license of a
real estate licensee who has entered into a guilty plea for a
felony or a crime substantially related to the
qualifications, functions, or duties of a real estate
licensee.
12)Requires the CalBRE to notify person whose license is
subject to suspension of his or her right to elect to have
the issue of the suspension heard.
13)Requires that the suspension be rescinded and the license
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reinstated to its status prior to the suspension if the plea
of guilty is withdrawn by the licensee.
14)Requires an applicant for a Real Estate Appraiser's license
to complete a BREA-approved course and examination that tests
the applicant's knowledge of state and federal laws relating
to the practice of appraising.
15)Makes other technical changes.
Background
This bill is one of a number of "sunset bills" the Author
introduced this year. Beginning in 2016, the Senate Business
and Professions Committee and the Assembly Business and
Professions Committee (Committees) conducted joint oversight
hearings to review 12 regulatory entities: The DCA, Acupuncture
Board, Board of Behavioral Sciences, California Massage Therapy
Association, Court Reporters Board, Board of Pharmacy, Physician
Assistant Board, Board of Podiatric Medicine, Bureau of Private
Postsecondary Education, Board of Psychology, CalBRE, BREA, and
Veterinary Medical Board. BSIS was reviewed in 2015. This
bill, and the accompanying sunset bills, are intended to
implement legislative changes as recommended by staff of the
Committees and which are reflected in the background papers
prepared by Committee staff for each agency and program reviewed
by the Committees for this year. SB 1196 is necessary to ensure
continued oversight of the real estate and appraiser professions
by CalBRE and BREA, as well as alarm companies and their
employees, locksmiths, private investigators, private security
services, proprietary security services, and repossessors by
BSIS.
CalBRE is the state entity currently charged with responsibility
to enforce the Real Estate Law, the Subdivided Lands Act, and
the Vacation Ownership and Time-share Act of 2004. CalBRE's
programs are in place to satisfy the Bureau's statutorily
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mandated obligations of licensing and regulating salespersons,
brokers, mortgage loan originators, real estate and prepaid
listing service licensees, reviewing and approving subdivision
and time share offerings, and approving CE and pre-license
courses.
In 1989, Title XI of the federal Financial Institutions Reform,
Recovery and Enforcement Act was adopted by congress mandating
states to license and certify real estate appraisers who
appraise property for federally related transactions. The
federal law was enacted as a result of the savings and loan
crisis. In response to the federal mandate, the California
Legislature enacted the Real Estate Appraisers Licensing and
Certification Law in 1990 (AB 527, Chapter 491, Statutes of
1990). The Office of Real Estate Appraisers (OREA) was
established within the Business, Transportation and Housing
Agency, and charged with developing and implementing a real
estate appraiser licensing and certification program compliant
with the federal mandate. In 2012, Governor Brown submitted a
reorganization plan to the Legislature. As a result, on July 1,
2013, OREA became the BREA within DCA.
BSIS currently licenses about 380,000 companies and employees
serving in the areas of alarm services, locksmith services,
private investigation, private security, repossession, and
firearm and baton training. BSIS administers the Alarm Company
Act, Locksmith Act, Private Investigator Act, Private Security
Services Act, Proprietary Security Services Act and Collateral
Recovery Act.
This bill includes a number of consumer protection and public
safety reforms related to the operations of BSIS and ensures
that BSIS is reviewed by the appropriate policy committees of
the Legislature. SB 1196 also ensures that CalBRE and BREA are
reviewed by the appropriate policy committees of the Legislature
in four years (2021). This bill additionally provides the
Commissioner the authority to suspend the license of a real
estate licensee who has entered into a guilty plea for a felony
or a crime substantially related to the qualifications,
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functions, or duties of a real estate license and requires an
applicant for a Real Estate Appraiser's license to complete a
course and examination that tests the applicant's knowledge of
state and federal laws relating to the practice of appraising.
FISCAL EFFECT: Appropriation: No Fiscal
Com.:YesLocal: Yes
According to the Assembly Appropriations Committee, the
provisions related to CalBRE and BREA will result in minor and
absorbable costs. According to information provided by the DCA,
the provisions related to BSIS will result in absorbable costs
related to firearm training facilities inspections; ongoing
costs of $225,000 related to the assessment to determine if an
applicant for licensure as an armed security guard is capable of
exercising appropriate judgment, restraint and self-control and;
onetime costs of approximately $397,000 to implement the
assessment and training facility inspection provisions of this
bill within the DCA's BreEZe system, costs that are expected to
be absorbable within existing resources.
SUPPORT: (Verified8/29/16)
California Association of Licensed Security Agencies, Guards &
Associates
OPPOSITION: (Verified8/29/16)
None received
ARGUMENTS IN SUPPORT: California Association of Licensed
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Security Agencies, Guards & Associates (CALSAGA) writes that
this bill makes noteworthy changes to the Private Security
Services Act, especially as it pertains to individuals carrying
firearms as part of their duties. According to CALSAGA, this
bill adds another level of scrutiny to the licensing process
which directly results in enhanced public safety for the
citizens of California.
ASSEMBLY FLOOR: 79-0, 8/30/16
AYES: Achadjian, Alejo, Travis Allen, Arambula, Atkins, Baker,
Bigelow, Bloom, Bonilla, Bonta, Brough, Brown, Burke,
Calderon, Campos, Chang, Chau, Chávez, Chiu, Chu, Cooley,
Cooper, Dababneh, Dahle, Daly, Dodd, Eggman, Frazier, Beth
Gaines, Gallagher, Cristina Garcia, Eduardo Garcia, Gatto,
Gipson, Gomez, Gonzalez, Gordon, Gray, Grove, Hadley, Harper,
Roger Hernández, Holden, Irwin, Jones, Jones-Sawyer, Kim,
Lackey, Levine, Linder, Lopez, Low, Maienschein, Mathis,
Mayes, McCarty, Medina, Melendez, Mullin, Nazarian, Obernolte,
O'Donnell, Olsen, Quirk, Ridley-Thomas, Rodriguez, Salas,
Santiago, Steinorth, Mark Stone, Thurmond, Ting, Wagner,
Waldron, Weber, Wilk, Williams, Wood, Rendon
NO VOTE RECORDED: Patterson
Prepared by:Sarah Mason / B., P. & E.D. / (916) 651-4104
8/30/16 19:58:09
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